A panel data analysis of the factors that affect economic growth and the. Kenya s economic growth rate has been low since independence. For china, the key factors driving its economic growth are domestic investment, trade openness, initial income, and rural share of the population. However, various external and internal factors have been affecting the sustainable development of the tourism industry worldwide. Jun 05, 2019 economic development requires a degree of political stability, investment and mixture of public and private initiatives to increase economic potential. The studies cover human capital, growth of total factor produc tivity in africa and single labor factor productivity in kenya. These are some of the factors that have pushed the researcher to undertake the topic under study. To present a conceptual framework on factors affecting the growth of smes in algeria. Development of human resources and economic development economic development is critical to all countries driven by govt. Factors that influence the economic development of a country. Of these factors, the two areas where we believe we have the greatest challenges in kenya are capital and labour.
The factors identified in this study include financial, government policies, and marketing factors. The economic pillar aims to achieve robust economic engagement in order to secure kenya s socio economic development and prosperity that will. Economic development is the sustained increase in income of all members of society so as to be free from material want. Factors determining adoption of new agricultural technology.
Issues and processes a paper for the future agricultures consortium workshop, institute of development studies, 2022 march 2006 by patrick o. Descriptive research method will be utilized to undertake the study. Factors affecting project performance of kenya ports authority. Kenya economic survey statistics of 2015 purports that export cargo generated usd 5. This paper provides the constituents perceptions on contribution of cdf to socio economic and political development with emphasis paid on socio economic factors influencing participation in projects funded by. Factors affecting economic growth in subsaharan africa diva. Kicd kenya institute of curriculum development kie kenya industrial estates limited. The skills development is important for economic growth, poverty alleviation, youth and womens empowerment and social inclusion. Republic of kenya economic survey and statistical abstract for various years 1.
Empirically, the studies done on development have raised mixed up conclusions as some show that economic development has lead to. Kenya s development goals were not thwarted by lack of economic. High hotel costs are primarily due to high hotel development costs and the cost of debt. Kenya has made significant political and economic reforms that have contributed to sustained economic growth, social development, and political stability gains over the past decade. The main economic factors to consider are capital, labour, raw materials and markets. The main factors affecting economic development include. Factors that undermine economic development in kenya free essays.
This section discusses how the fundamental economic factors shaping the future of international trade namely demography, investment, technology, energy and other natural resources, transportation costs and the institutional framework are likely to evolve in the coming years. Dec 15, 2017 the issue of alcohol abuse in kenya is deeply rooted and has continued to affect not only the health but also the social and economic well being of the youthful population. Unbranded guesthouses and lodges comprise the largest share of accommodation facilities. Although ethiopia possesses numerous natural, religious, historical, nonnatural and cultural tourism attractions, economic contribution and its potential are. An evaluation of socioeconomic factors influencing the. The purpose of the study was to investigate the factors that influence the growth of ecommerce in nairobi, kenya. Kinyua, 2014, did a study on factors affecting the performance of small and medium enterprises in the jua kali sector in nakuru town, kenya. Kenya overview world bank group international development. Insufficient credit growth to the private sector which stands at 3. We look at these key factors and make a judgement call as to where kenya is and what can be done. Construction industry is the backbone for economic development.
The study sought to provide answers on the effect of internet coverage on ecommerce businesses in nairobi, kenya. It also looked at the various modes of payments and how this affected the growth of the various ecommerce businesses. It covers major macroeconomic developments in the regions countries and discusses structural issues affecting future growth, poverty, and inequality. Kimando corresponding author jomo kenyatta university of agriculture and technology p. Effect of the youth enterprise development fund on youth. From 20002005, kenya made a significant economic progress, recording a 5% annual growth rate. Human resources development economic development examples and. Directions in development private sector development gender and economic growth in kenya unleashing the power of women gender and economic growth in kenya isbn 08269199 kenyan women are making a largealthough frequently invisiblecontribution to the countrys economy,particularly in the agricultural and informal business sectors. Kenya is a middle income economy where agriculture plays a fundamental role in economic growth and development. Perceptions and development participatory approach in kenya despite increased emphasis on the need to shift the development efforts towards more communityengaged approaches chambers r, 1983. The main objective of this paper is to analyze the influence of socioeconomic factors on the levels of households participation in cdf projects in efforts to. However, much of this progress has since unraveled due to electoral crisis of december 2007. Health and socialeconomic effects of alcohol abuse in kenya.
For the study multiple regression also revealed variation in sme growth were attributable to variations in social factors, economic factors, and factors of growth. The main objectives of this study is to identify the main cultural and socio economic activities affecting secondary school students, to find out the level of. The research is conducted in order to investigate the potential factors that affect the startupand hinder the development of smes in algeria. Factors affecting employment in kenya example graduateway. Development of education in colonial kenya was politically directed.
Apr 08, 2019 the 19 th kenya economic update keu, unbundling the slack in private investment, attributes the slack on the demand side of the economy to two factors. This growth has been deemed low yet 30% of the budget goes to education. This study is the first one of its kind to address this gaps. The strategic role of capital in raising the level of production has traditionally. Kenyas economic outlook remains stable amid threats of. The economy has been growing at a rate of 25% for the last 10 years after initial growth rates of between 0. All of these factors have resulted in an uncertain environment for local entrepreneurs. This paper provides the constituents perceptions on contribution of cdf to socio economic and political development with emphasis paid on socio economic factors influencing participation in projects funded by cdf where hitherto such an. Fundamental economic factors affecting international trade.
In a study on economic growth and inflation rate in kenya, kigume 2011 shows that low economic growth rate and inflation rates have been experienced over the years in kenya. The aim of the study is to determine the causality between interest rates, inflation, savings and economic growth, and the extent to which each of the determinants affect economic growth. Factors that undermine economic development in kenya. Despite the crucial role of women entrepreneurs in the economic development of their families and countries.
Factors affecting completion of road construction projects. Agriculture plays an important role in economic growth, enhancing food security, poverty reduction and rural development. For instance, the introduction of business enterprise skills as a new subject in zimbabwe is a response to the changing economic trends in zimbabwe, thus giving evidence of how changing economic trends affect the curriculum. Due to the rampant poverty level in kenya, schemes like nhif are the only hope. For economic reasons such as acquiring dowry or bride price development of social status especially for the father and the old man. Rapid economic growth requires the positive interaction of multiple factors such as the prevalence of primary education, agricultural development, macroeconomic. The effect of microfinance factors on women entrepreneurs. Similarly, theft, embezzlement, and fraud by public. A survey of kigumo district muranga county lawrence n. Determinants of regional economic growth in kenya academic. There are a number of factors that have continued to affect employment in kenya. Kenya can reorient itself towards sustainable development, using technical education as a vehicle for socio economic and technological transformation. Pdf economic evaluation of factors affecting farmers. It aims to inform a roundtable discussion on kenyan manufacturing in.
Factors affecting the success of youth enterprise development funded projects in kenya. The most significant social factors affecting pupils performance in kcpe were indiscipline, substance abuse, pregnancy, unexplained reasons, lack of interest in school and sickness. Factors affecting economic development economics help. O box 6200000200, nairobi, kenya school of human resource development entrepreneurship and procurement department. This study examines the determinants of economic growth in kenya the period 197120 ii with a particular focus on interest rates, savings and inflation rates. These factors are traced from colonial era and continue to have influence even today. Key factors for kenyas entrepreneurship nairobi business. Doc economic development of kenya abdirizak m diis. It aims to transform kenya into an industrializing, middleincome country providing a high quality life to all its citizens by the year 2030 kenya vision 2020, 2007. Education and training investments assist in the generation of knowledge, skills, social values, competences and techniques that are significant in improving the. In recent years, economic development in central africa has been improved.
Role of educational investment on economic growth and. Though in kenya these factors are considered, the political factor is seen as the steering wheel of education in the country. Social, economic and political context in kenya interactions. Factors affecting the performance of small and micro.
Effect of the youth enterprise development fund on youth enterprises in kenya oduol stephen okoth1, simeon okelo1, fredrick aila1, abiud ochieng awiti1, maria onyango2, martin ogutu3, odhiambo odera4 1school of business and economics, maseno university, kenya. As a result, local businesses tend to stay in the informal sector and do not contribute to national economic growth. Factors affecting developing planning in africa cuny academic. Nov 21, 2012 for the country to have development, proper policies have to be undertaken to deal with uncertainties in the future which would affect the performance of the economy. Despite their significance, past statistics indicate that three out of five businesses fail within the first few months of operation kenya national bureau of statistics, 2011. While the developed countries have some strategies to cushion the citizen against unemployment, the developing and under developed countries are still struggling with the impact of unemployment.
Factors influencing real estate investment in kenya. Factors that influence educational development in any country include historical, geographical, technological, religious, political and ideological. There are other factors for problems of performance in kenya such as project management, coordination between participants, monitoring, and feedback and leadership skills. Sen a, 1999, this approach has rarely been used in development projects in kenya. Nevertheless, a new generation brings new challenges and opportunities and. The other variables had insignificant relationship. The most significant economic factors affecting pupils performance in kcpe in chuka division that were. Establishing the factors affecting the growth of small and.
Socioeconomic status and participatory development in kenya. Mugo, 2012, did a study on factors affecting entrepreneurs performance in kenya dwelling on nairobi women groups in the central business district. As earlier stated this gender related violation of the rights of the girl child is a major concern in kenya. However, its key development challenges still include poverty, inequality, climate change, continued weak private sector investment and the vulnerability of the. The determinants of inflation in the kenyan economy.
Real gdp growth rate of kenya and its regional peers %, 202016f. These factors interplay in the process of curriculum change in order to come up with a desired curriculum. Kenya, mauritius and seychelles have established hotel investment development markets. In kenya, it goes without saying that smes have played a significant role in the macro economy. According to the economic survey 2012, the sector contributed over 50 percent of new jobs created in the year 2011. Sep 16, 2014 our results suggest that domestic investment, net oda inflows, education, government effectiveness, urban population, and metal prices positively and significantly affect africas economic growth. Factors affecting employment in kenya 7 words bartleby. Kenya is the largest food and agricultural products importer in east africa. For the study multiple regression also revealed variation in sme growth were attributable to variations in social factors, economic factors, and factors of. The study was on socio economic factors affecting demand for private secondary schools in likuyani district, kakamega county, kenya.
Rapid increases in inflation could reduce economic growth and worsen the poverty levels of the citizens of kenya. Most of the literature on determinants of economic growth in developing countries is based. Peace, economic, diaspora, environmental and cultural. Smallholder agriculture is identified as a vital development tool for achieving millennium development goals. Every measure of human development life expectancy, infant mortality, literacy, per capita income, etc. To analyze the external and internal factors affecting the growth of smes in algeria. Although it is too early to predict the socio economic impact of the covid19 pandemic on the kenyan econ0my. Empowerment and participation one of the greatest challenges in youth empowerment and participation is how to ensure that young people are passionate about causing transformation in kenya.
In kenya economic development is dependent on agricultural improvement. Furthermore, it is widely thought the economic fallout for the continent is likely to be severe and longlasting. For instance, social factors equally factors of growth, therefore insignificant. Creating opportunities in terms of employment is of critical concern to every country in the world. Health and socialeconomic effects of alcohol abuse in. Political instability kenya is nation that has experienced a lot of political instability which have greatly slow down pace of economic development. The economy of kenya has been continued to be the largest in the east african. Farooq, chaudhry, shafiq and behanu2011 in their study factors affecting students. However, due to the slow economic growth, corruption, nepotism and demand for experience by potential employers, 75% remain unemployed. Factors affecting the success of youth enterprise development. For example muhammed,yinusaand akale 2008 in their study socioeconomic factors influencing students academic performance in nigeria revealed that low income of the parent was a major impediment to academic success and development on the part of the student. Poverty and economic development of kenya munich personal.
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